Entrepreneurship, in its essence, plays a vital role in any country’s economy. It offers high-class services at various markets in the world. It is entrepreneurship that pushes the economy of a country forward and helps it grow at a rapid pace.
Entrepreneurs can make related industries thrive fast. They create innovative products and services, thereby helping related manufacturers working for them and expand their business scale. This way, more and more workers are going to keep their job. As a result, the rate of unemployment diminishes. Consequently, the whole society is experiencing a more profitable business.
Entrepreneurial activities can add to the general wealth of the nation. Enabling the employees to have higher incomes can consequently enable the country to increase the national income in the form of higher taxes. A country with higher taxes is more likely to spend more on the quality of its nation.
This is like a chain reaction; you can relate entrepreneurship and the necessity of its strong presence in the financial body of a country to each and every sector of the economy.
In this article, we are attempting to focus on why Georgia in general and Tbilisi, the capital, are replete with entrepreneurial opportunities. The possibilities are without a doubt countless. So, let us without further ado scrutinize the reasons below.
As you probably know, The World Bank Group publishes a report showing the ease of doing business in many countries around the world. Their last report, published in 2020, assessing many sectors of the countries’ economy, shows that Georgia stands in 7th place among all countries in the world. That simply shows how easy it is to embark upon businesses in Georgia. Also, the country stands in 2nd place between Europe and Central Asia regions.
Georgia’s economy is almost free of corruption. This is what the Transparency International says, by publishing an index called the Corruption Perceptions Index (CPI). Georgia already holds the 41st position among 180 countries in the world, on the CPI published in 2018. This shows that you should not necessarily be worried about corruption in Georgia when planning to act as an entrepreneur there.
Also, as the World Economic Forum reports, the rate of taxes in Georgia is low making the country stand in the 9th position in the world.
Among other facts about Georgia’s economy lies the sweet news that the country has many qualified and talented workers who are thirsty to help your entrepreneurship grow as fast as possible.
On the other hand, to say nothing of tourism in Georgia, it is good to know that Tbilisi alone is packed with substantial, eye-catching tourist areas you will never forget, let alone many other cities in the country.
Ultimately, keep in mind that Georgia’s GDP has been constantly rising in recent years (around 5 percent). This shows how fertile the country’s economy is, hence ensuring you of the vast majority of the entrepreneurial possibilities in the country, especially in the capital, Tbilisi.
It is absolutely easy to start a business in Tbilisi. The procedure is never time-consuming. Also, the costs are low too. Among the countries in Europe and Central Asia, The World Bank has placed Georgia on the 2nd place comparing the ease of starting a business in the countries.
That is absolutely stunning!
The score shows how easy it is to embark upon small- to medium-sized businesses (SMEs) and act as an entrepreneur in the country.
Among the countries located in Central Asia and Europe, starting a business in Georgia and Tbilisi requires only one individual, meaning that one person can register a company and hire employees. The time required to start your business there is as low as 2 days, but with a small fee, opening a company in one day is definitely possible. This in itself is a brilliant record.
Let us check some figures here, comparing some of the countries located in Georgia’s surrounding region:
|Starting a business in Georgia and neighboring economics – Ranking and Score|
|Country or region||Rank||Score (0-100)|
|Regional Average (Europe & Central Asia)||–||90.5|
Additionally, the cost to start a business in Tbilisi is low too. Let us review some numbers; you need to spend 2.1% of income per capita received in a business in order to start it. It means that if you want to calculate how much you need to start a business, you first figure out how much that specific business is going to add to your pocket, then multiply it by 2.1 percent. In this field, The World Bank gives Georgia an outstanding score of 99 out of 100.
The entrepreneurs in Georgia are hugely optimistic about the future of their careers, as it is easy to do and maintain a business in Georgia. They more often than not quote that the climate is so business-friendly, adding that the society is so supportive and the government cooperates a lot.
The entrepreneurs also say they have been taking advantage of the tight labor market. Although this may seem simple and insignificant, if you want to know the value of this factor you need to know how tough it is to start a business in the U.S. as the unemployment rate is low.
To make the list even more appealing, keep in mind that the access to the capital is also high. Plus, the versatile geography of Georgia makes adapting with any kind of lifestyle and starting any kind of business as easy as pie.
One of the most essential reasons why many people are targeting Georgia and Tbilisi for their entrepreneurial activities is the local and regional support for such activities. If you ask the majority of business owners in Georgia, they will surely name the loyalty of their customers as one of the lovely reasons why they tend to keep their business working in Georgia.
Furthermore, there are powerful networking organizations in Georgia too. These organizations help entrepreneurs communicate with mentors, accelerators, and potential sources of funding.
There are multiple industries in Georgia, varied enough to grant you many options when choosing where to base your enterprise. As an entrepreneur, you can take into account energy, agriculture, tourism, real estate, IT, logistics, manufacturing, and even aerospace industries as some of the most prosperous sectors of the country where you can invest in.
According to FAO (Food and Agriculture Organization of the United Nations), 43.4% (more than 3 million hectares) of the whole territory of Georgia is marked as agricultural land. It is so widespread in Georgia, you can find many people working in this sector in the country.
The economy in Georgia and Tbilisi is active in a way that the unemployment rate is only 3.7 percent in 2019. This is good news for entrepreneurs, as they can find the most proper workforce for their companies.
Despite the benefits of this fact, keep in mind that you need to spend more if you tend to hire more educated, skilled workers. The low unemployment rate makes the well-educated workforce have the upper hand, as the demands to hire them arises, resulting in an increase in their requested price.
The labor market in Georgia is flexible. To clarify, you need to know that the country possesses one of the most liberal labor environments in the region.
Georgia currently lacks skilled labor, but the country is working well with industries to solve the issue by enhancing the quality of education in the country.
First, let us review some numbers to discern the real situation of Georgia regarding tourism. The country’s tourism industry is growing constantly. Millions of travelers are visiting Georgia and Tbilisi every year. That is a considerable beneficial fact for entrepreneurs. If you are one, try to make use of the very many visitors coming to the country every year.
The number of international travelers visiting Georgia in 2015 was more than 6 million and has been boosting thereafter. In 2017, almost 8 million tourists have visited the country, and the trend is constantly ascending.
The tourism industry has been adding a huge amount of money to the GDP of the country over the past years. It has formed 6.86 percent of the total GDP in 2017, and the contribution has increased to roughly 7.14 percent in 2018.
The numbers and the chart nicely show how thriving the tourism industry is in Georgia. That is a tremendous opportunity for entrepreneurs and investors.
Entrepreneurship and investing in Georgia and Tbilisi are without a doubt among the best financial goals you can set in your future plans. There are numerous reasons to prove this.
The country stands on the 7th place of The World Bank’s chart regarding the ease of doing business in the world, though it lies on the 2nd place among the European and Central Asian countries. That alone corroborates how safe it is to settle your business in the country.
Apart from that, the economy of the country is almost free of corruption, the tax rates are relatively low, the society is teeming with the talented and skilled workforce usually requesting low salaries, the tourism industry is prospering year over year, and the country’s GDP is rising constantly.
The community well supports entrepreneurs to start their enterprises and the versatility of industries in Georgia is appealing. Plus, we need to emphasize that there are numerous potentials in the tourism and agriculture industries specifically, along with other thriving industries such as real estate, energy, and manufacturing.
All of these facts about the county ensure the entrepreneurs and investors of the safety of embarking upon their projects in Georgia, and more specifically in Tbilisi.